Houston Bank Chooses SunGard To Manage Energy Derivatives Trading

Texas based Amegy Bank N.A. signed on SunGard's Kiodex Risk Workbench to help with commodity pricing, position keeping and risk management of its energy derivatives business. Amegy selected Kiodex to complement its portfolio of offerings to its energy lending customers

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Texas-based Amegy Bank N.A. signed on SunGard’s Kiodex Risk Workbench to help with commodity pricing, position keeping and risk management of its energy derivatives business. Amegy selected Kiodex to complement its portfolio of offerings to its energy lending customers with the addition of energy derivatives.

Amegy is one example of the emergence of banks as providers of energy derivatives to companies that have financial exposure to commodity prices. Bundling energy derivatives with energy lending helps put banks like Amegy in a position to increase revenues while helping to decrease the risks associated with lending in the energy sector.

SunGard’s Kiodex Risk Workbench is supposed to allow Amegy to handle the attributes of commodity markets, such as the nature of market data and models that deal with the asymmetrical aspects of energy or any commodity. It will also help Amegy to measure credit risk exposures, and provide instruments that are meaningful to its customers’ risk profiles.

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